Weekly Report 101

GENERAL SITUATION IN MEXICO

Weekly Review #101 I April 20, 2022

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MANUFACTURING INDUSTRY LG AND MAGNA INVEST $100 MILLION DOLLARS IN MOTORS AND CHARGERS PLANT FOR ELECTRIC CARS South Korea’s LG and Magna International will invest $100 million dollars in a plant in Ramos Arizpe, Coahuila, which will produce inverters, motors, and integrated chargers to support General Motors’ production of electric vehicles.

According to LG Magna e-Powertrain, a joint venture between the two firms, the 79,248-square-meter complex will be its first production base in North America and is expected to create around 400 new jobs.

The president of the South Korean vehicle component solutions company, Eun Seok-Hyun, highlighted that the Ramos plant represents one of the key pillars of the company’s long-term strategy to become the automotive industry’s benchmark innovation partner.

Cheong Won-Suk, CEO of LG Magna e-Powertrain, said this will enable them to better support their customers with best-in-class components for the next generation of electric vehicles and help them expand their presence in the fast-growing global electric vehicle market.

“In just over a year, we added an expansion agreement, identified a strategic location to support our customer, and are now in the process of realizing our plans,” said Tom Rucker, president of Magna Powertrain.

He also noted that the construction of a new facility shows the strength of this collaboration and commitment to delivering innovative solutions to customers to meet their challenges.

SOURCE: Forbes Mexico

At the same time, it reinforces its participation in the electrification transformation, whether, through eDrive subsystems or complete systems, he added.

The firm said General Motors is the key customer of this new facility and will play a key role in its journey to build a strong, scalable, sustainable, and focused electric vehicle supply chain in North America.

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KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference April 13th–19th, 2022

ENERGY • The President announced the result of Sunday’s vote of 275 votes in favor and 223 against, and, even though there were more votes in favor, twothirds of the votes are required; that is why it was not approved. He mentioned that an act of betrayal of Mexico was committed in the Chamber of Deputies by a group of legislators who, instead of defending the people and the public, support the interests of foreign companies that are dedicated to plunder.

• He announced that his government prepared a strategy to face and “shield” from this situation since the opposition’s intention of rejecting the Reform was evident. He stated that he will continue to look for ways to strengthen the CFE and for the nation to manage oil, the electricity industry, and lithium. He rejected that he will present another energy reform, and it will be an issue that will have to be addressed in 2024.

LITHIUM • President López Obrador mentioned that lithium is a strategic mineral without which there could be

no industrial development to replace oil. Mexico has significant reserves of this resource. He stated that they will seek to nationalize lithium to indicate that it can only be used for national benefit. He indicated that the granting of concessions for other minerals will continue, except for lithium, and reiterated that the Mexican state will administer it.

• The President said he was pleased with the approval of the Lithium reform because it is a strategic mineral. In response to questions about the lack of technology to extract it, the President said that little by little, work will be done to have the infrastructure for its extraction. He said that today in the Senate of the Republic, the Lithium reform will be discussed.

HEALTH • Expired medication: Elizabeth García Vilchis pointed out that it is false that 134 million medicines expired in IMSS warehouses, of which 14 million were basic vaccines. The President also stated that LatiUs and Carlos Loret multiplied by five times the information provided by the IMSS through its transparency platform. In the last 3 years, the IMSS has

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KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S supplied 2.7 billion pieces of medicines. Of these, the loss percentage due to expiration is only 0.76%.

• Medicine supply: The Secretary of Health, Jorge Alcocer Varela, informed that to date, 1,459,288,818 pieces of medicines have been purchased, 32% have been supplied, and there has been 68% progress in distribution.

• COVID 19 Vaccine: Foreign Minister Marcelo Ebrard informed that Mexico is working with India to produce vaccines for COVID.19, other diseases such as human papilloma and is also working jointly for the production of oncological medicines. He announced that a Mexican consulate will be opened in Bombay to help coordinate the production of vaccines and medicines with 8 Indian companies.

• Vaccination strategy: In Mexico, 196 million vaccines have been administered nationwide, of which 42 million have been booster vaccines. From April 11 to date, 2 million 178 thousand 746 vaccines have been administered. He mentioned that 47,442 people who had not received the vaccine were identified, and today they have received their first dose.

• Minor Vaccination: Dr. Hugo Lopez Gatell COVAX mechanism has not yet made available the vaccine to be used in the 5-11 age group; Pfizer has also been requested and responded that in the second half of 2022, it might have the vaccine; SINOVAC and the vaccine from Cuba may be other options.

INTERNATIONAL • Ukraine migrants: When asked about Russian and Ukrainian migrants sheltered in Tijuana, the President indicated that the Ministry of Foreign Affairs is already dealing with the situation. He mentioned

that the agency could inform on the number of refugees and the status of their procedures on their way to the United States.

BORDER • The President indicated that the federal government did not intervene in the negotiations because they are contrary to free trade. Although legally, the Texas government can do so, it is a situation that should not occur because it is against s free trade and is probably a tool used by the governor of this American border state to position himself as a possible candidate for the presidency for the Republican Party.

MAYAN TRAIN • In response to questions about the environmental impact and the possible suspension by a judge of Section 5, the President claimed that he has not yet been notified and accused environmentalists and companies with political interests of being responsible for promoting the cancellation.

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NEWS BY STATE

BAJA CALIFORNIA The State of Baja California remains lowrisk or green light with 137 active cases in the past 14 days and 2 new cases in the past 24 hours. The intensive vaccination plan for the adult population continues this week in all municipalities.

The Secretary of Health mentioned that preventive measures must be kept, such as the use of face masks in closed spaces, hand washing, and healthy distance.

SONORA The State of Sonora is considered a lowrisk or green light. Official reports confirm 1 new case in the last 24 hours. The vaccination plan continues this week with

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NEWS BY STATE

NUEVO LEON The governments of the Mexican state of Nuevo Leon and the state of Texas (United States) signed an agreement last Wednesday to strengthen security on the border they share, which will help speed up the transport of goods through the Colombia International Bridge to Laredo.

COAHUILA In Torreon, members of the Laguna Sub-Committee of COVID-19 met to analyze the progress of the pandemic in Coahuila. One of the main topics discussed during the meeting was the application of the fourth dose of the vaccine in the state.

TAMAULIPAS The governors, Greg Abbot of Texas and Francisco Garcia Cabeza de Vaca of Tamaulipas, signed a collaboration agreement to increase security on the northern border of the state and end inspections of cargo trucks, which were suffocating international trade.

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NEWS BY STATE

QUERETARO Queretaro, General Electric’s innovation headquarters.

General Electric Infrastructure Queretaro (GEIQ) employs around 1,500 engineers from different specialties, where 70 innovative ideas are generated every year, which, if patented, will later become part of devices that make up the global industry.

The Advanced Engineering Center of the U.S. firm is a multi-business site where four of General Electric’s main businesses are present: GE Gas Power, GE Aviation, GE Renewable Energy, and GE Digital, from where Mexican engineers provide support and solutions for Latin America and the world.

GUANAJUATO Governor Diego Sinhue Rodríguez Vallejo stated that the 14 energy investment projects in Guanajuato and the authorized projects continue their progress.

“The projects are moving forward; they were never suspended; they always continued their progress because they were already authorized permits. Finally, the reform was not authorized, then they continue their progress”.

He explained that it is in Guanajuato’s best interest that the current energy law continues, as it is a state with large solar and wind energy parks, and more investments may come in the future.

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NEWS BY STATE

SAN LUIS POTOSI

JALISCO

The German automaker BMW, located in San Luis Potosi, continues to position itself as the most challenging production by this firm because a few months after it began production of the 2 Series Coupe, this day announced that this same plant will begin production of the second generation of BMW M2 exclusively.

Jalisco prepares continuous improvement training for entrepreneurs and SMEs. Through a program, the Council of Industrial Chambers plans to train and certify 100,000 people in the state in productivity by 2022. The model to increase productivity through continuous improvement has already been applied in the industrial sector of Jalisco through the CCIJ, where 8,900 people were trained, and has also been implemented in companies in Sinaloa, Zacatecas, and Tabasco.

By 2022, the plant will hire 800 additional employees and start a second production shift, with plans to reach an annual production of 90,000 cars.

AGUASCALIENTES

The Economists Association of Aguascalientes seeks to create a Planning Commission. There is a need to improve urban planning in the state, taking advantage of each point’s geographic conditions and economic vocations. They will seek to generate long-term development models to present to the authorities and that regardless of changes in government, these can be sources of consultation.

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NEWS BY STATE

STATE OF MEXICO The government of the State of Mexico started the great week of anti-COVID vaccination. Mexican citizens of legal age who are missing doses of the biological vaccine or adolescents who have an incomplete vaccination schedule can be immunized. Throughout this week, the Ministry of Health has more than half a million doses available to vaccinate those who are missing a dose.

CDMX For the first time since the beginning of the pandemic, Mexico City reached the zero index in the epidemic risk level for COVID-19. This was announced by the head of government, Claudia Sheinbaum, during her conference this Friday, April 1.

During this Friday’s conference, Eduardo Clark from the Digital Agency for Public Innovation (ADIP) explained that Mexico City is at the best moment in terms of spreading the SARS-CoV-2 virus.

In fact, due to low demand, this weekend, the rapid testing macro kiosks installed in the Gustavo A. Madero and Xochimilco mayoralties will be closed. Therefore, health workers assigned to these health posts will return to their daily work in their respective health centers. Likewise, the capital city government is already considering the withdrawal of the COVID-19 vaccination macro sites since having 98% of the population aged 15 years and older with a complete vaccination schedule and 80% with booster doses has resulted in low demand. In the last week, an average of 6,000 people attended. Eduardo Clark Garcia affirmed that even if the macro vaccination centers are withdrawn, the stragglers will have the opportunity to get vaccinated later on.

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ECONOMIC RECOVERY

ECONOMY AND INVESTMENTS IN MEXICO • The human resources management platform Rankmi invests 5 MDD to expand in Mexico.

• Sanofi Mexico announced a 5 MDD investment in the country to research and develop 45 clinical studies in more than 240 research sites in Mexico.

• Kuka Home invests US$150 million to expand its plant in Salinas, Victoria.

• South Korea’s LG Electronics and auto parts manufacturer Magna International laid the first stone for a plant in Ramos Arizpe, Coahuila.

SOURCE: El Economista

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TOWARDS THE “NEW NORMAL”

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

INFORMATION UPDATED ON APRIL 18, 2022 AT 19:00 HRS LOCAL TIME.

NEW CASES REPORTED: 706

SOURCE: https://www.gob.mx/salud/

CONFIRMED CASES: 5,727,832

NEW DEATHS REPORTED: 5

CONFIRMED DEATHS: 323,949

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INCREASE OF CONFIRMED CASES SINCE THE FIRST REPORT MAP WITH THE DISTRIBUTION OF THE INCIDENCE RATE OF ACCUMULATED CASES OF COVID-19 BY ENTITY OF RESIDENCE.

National rate 3.12

0 to 10.0 (29 states)

40.1 to 50 (0 states)

10.1 to 20 (3 states)

50.1 to 60 (0 states)

20.1 to 30 (0 states)

60.1 to 70 (0 states)

30.1 to 40 (0 states)

>70 (0 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of April 18, 2022, globally there have been reported 496,507,539 confirmed cases (7,221,651 new cases since last week´s report) of COVID-19 and 6,177,354 deaths (22,336 new deaths*). https://COVID19.who.int/

SOURCE: https://www.gob.mx/salud/

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TOWARDS THE “NEW NORMAL” INCIDENTS OF CONTAGIONS IN THE POPULATION

BY REGION AS OF APRIL 18

DEATH INCIDENTS IN POPULATION

BY REGION AS OF APRIL 18

SOURCE: https://www.gob.mx/salud/

EHS

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TALK TO YOUR HEALTHCARE OR VACCINE PROVIDER ABOUT THE TIMING FOR THE SECOND SHOT IN YOUR PRIMARY SERIES. • People ages 12 through 64 years, and especially males ages 12 through 39 years, may consider getting the second dose of an mRNA COVID-19 vaccine (Pfizer-BioNTech or Moderna) 8 weeks after the first dose. A longer time between the first and second doses may increase how much protection the vaccines offer, and further minimize the already rare risk of heart problems, including myocarditis and pericarditis.

• People ages 5 through 11 years, people ages 65 years and older, people more likely to become very sick from COVID-19, or anyone wanting protection due to high levels of community transmission should get the second dose of Pfizer-BioNTech COVID-19 vaccine 3 weeks (or 21 days) after the first dose, or the second dose of Moderna COVID-19 vaccine 4 weeks (or 28 days) after the first dose.

If you have completed your primary series—but are not yet eligible for a booster dose—you are also considered up to date. Stay up to date by getting 1 booster when you are eligible. Getting a second booster is not necessary to be considered up to date at this time.

DAVID ANTUNEZ Environmental, Health, and Safety Director.

LABOR

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ALVARO GARCIA HR, Vice President

EASTER HOLIDAYS IN MEXICO In Mexico, the days preceding Easter Sunday lead, along with the December holidays, the commemorations that more people observe, yet, the Mexican legislation does not include any day during eastern as part of the mandatory days of rest.

Easter in Mexico coincides with the annual spring school vacation. Therefore, there is a high preference among working people to schedule breaks or request vacations around this date. Maundy Thursday and Good Friday are Mexican bank holidays.

Labor laws in most nations set provisions for statutory rest days, commonly known as holidays, for the population to celebrate different events, from national, cultural, or religious holidays. Usually, these dates are paid holidays. Mexico is one of the countries in the world with less mandatory paid holidays a year.

To attract and retain talent, companies use to offer additional holidays a year. Planning for future easter holidays is highly recommended.

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